Compressed Air Treatment Equipment Market Size, Share & Trends Analysis Report By Product (Filters, Dryers, Aftercoolers), By End Use (F&B, Chemical, Pharma, Healthcare, Paper), By Region, And Segment Forecasts, 2020 - 2025

Report Overview

The global compressed air treatment equipment market size was valued at USD 7.49 billion in 2019 and is expected to register a CAGR of 7.3% from 2019 to 2025. A well-running compressed air system requires clean air, which is crucial for the proper functioning of industrial equipment. However, the compressor contains particles from the surrounding atmosphere, as well as contaminants from the compressor itself. These contaminants cause damage to the end-use equipment reducing their lifespan. Therefore, quality of compressed air is of paramount importance in a number of end-use applications. This is expected to propel the market growth over the forecast years.

These treatment solutions improve the end-use machinery performance and reliability while lowering the CO₂ emissions, energy consumption, and operational costs to deliver maximum manufacturing uptime. This has led to an increased product adoption in several end-use industries, such as chemical, food & beverages, automotive, and aerospace & defense. The unprocessed compressed air contains many harmful contaminants that must be removed or reduced to acceptable standards to provide a safe and cost-effective production facilities in the food & beverage industry.

For instance, in U.K., the British Compressed Air Society (BCAS), the governing body for compressed air, and the British Retail Consortium (BRC) that represent the retail sector have together developed a Code of Practice for Food Grade Compressed Air to regulate standards for food manufacturers. The aforementioned standards and regulations are expected to drive the demand for compressed air treatment equipment in the food & beverage industry over the forecast period.

The quality of compressed air is determined not only by the process of compression, but more importantly, by the process of conveying treated air before it is used for the concerned application. Thus, compressed air treatment is considered to be a smart choice while investing in a compressor since the equipment not only protects end-use machinery from all forms of contaminants but also improves the its efficiency and prolongs the lifespan by reducing corrosion and rust.

Compressed Air Treatment Equipment Market Trends

Compressed air treatment equipment is widely used in a variety of end-use industries such as chemical, paper, food & beverages, pharmaceutical, healthcare, and others. Surging demand across several application areas and the growing need for clean and dry air in the medical, food & beverage, and manufacturing industries is expected to be a key driving force for the market over the forecast period. Furthermore, increasing adoption of air treatment equipment in order to improve the operational efficiency of an air compressor and thereby lower its maintenance cost is also expected to positively impact the market growth over the forecast period.

The growing disposable income and rising internet penetration have created shopping convenience online. This has urged the need to set up more warehouses, which would indirectly spur compressed air treatment equipment sales across the e-commerce industry.

Recent consumer concerns for food safety have resulted in food manufacturers considering the adoption of compressed air treatment equipment and is a key factor expected to drive demand across the food & beverage industry. Consumers are very sensitive towards food safety, and any contamination with products or packaging during the manufacturing process may not be in their best of interest. Therefore, manufacturers focus more on implementing air treatment equipment to avoid any contamination and maintain quality

Compressed air treatment equipment helps minimize the risk of loss of production by increasing the reliability of supply and enhancing the safety and health aspects of operating a pressurized system. It helps detect leaks, upgrade inefficient equipment and adjust controls. Additionally, a compressed air treatment system helps save energy, improve manufacturing processes, reduce plant noise and enhance the overall system reliability. These aforementioned factors are anticipated to fuel the market growth over the forecast period.

Innovation, global competition, and new technologies are the key driving factors behind the compressed air treatment industry’s expansion and growth. Companies are increasingly investing in research & development to develop products that are technologically advanced, energy-efficient, and cost-effective. However, the advent of smart technologies that resonates with the Industry 4.0 revolution across the globe is anticipated to be the prominent driving factor for market growth over the forecast period.

A compressed air system generates air that is utilized in a variety of applications, from plant air to high-quality breathing air. Different end-use industries demand varying degrees of air quality. Contaminant level and dryness are two characteristics that separate low air quality from good air quality. However, higher quality air is more expensive, making air treatment equipment more expensive and possibly impeding compressed air treatment equipment market growth.

Product Insights

The dryers and filters segments together accounted for over 60% of the total revenue share in 2018 and emerged as leading product categories. The filters segment is projected to gain traction over the forecast period as they are energy-efficient, easy-to-use, and offer safety and flexibility.Furthermore, availability of high-performance filters that help reduce pressure loss by approximately 40-50% is expected to propel segment growth over the coming years.

Refrigerated air dryers emerged as the dominant segment in 2018. Refrigeration dryers operate on the principle of condensation by compressed air cooling through a refrigeration circuit. These dryers are used to eliminate water vapor in several industrial applications including chemical, food processing & packaging, paper, semiconductor manufacturing, and pharmaceutical drugs. Furthermore, they are also used in healthcare sector for several dental and surgical equipment.

The desiccant dryer segment accounted for a significant market share in 2018 and is expected to witness the fastest CAGR of 7.5% over the forecast period. In heavy industrial operations, water vapor in compressed air equipment leads to corrosion, premature failure, quality control issues, frozen air lines, and a range of other operational problems. Desiccant dryers purify compressed air by absorbing moisture and work in conjunction with an industrial air compressor.

End Use Insights

Food & beverage emerged as the largest end-use segment in 2018. High product demand in this end-use segment is attributed to the growing need for clean air in numerous critical applications, such as food processing and packaging. Rise in the number of F&B manufacturers, particularly in U.S., is expected to provide drive the segment further.

Food processing and pharmaceutical plants require clean rooms with zero impurities for product manufacturing. This has led to the emergence of industrial standards for the compressed air treatment equipment. The most widely used standard in the market is ISO8573 that seeks to establish a method for classifying the purity of compressed air.

Integration of the humidity detection sensor in the air treatment system ensures the quality of end products. Growing product demand owing to the aforementioned factors is boosting their adoption across the pharmaceutical and food processing industries, thereby driving the overall sales for compressed air filtration products.

Regional Insights

North America’s compressed air treatment equipment market is the largest, accounting for approximately 36.3 % in 2019. The North American compressed air treatment equipment market is predicted to increase significantly in the coming years due to the region’s rapidly expanding chemical and food & beverage sectors. Dry and clean air enhances machine life and improves product quality, lowering maintenance costs. As a result of these reasons, there has been an increase in demand in the aforementioned industries, which is likely to continue over the projection period.

The compressed air treatment equipment market in the Asia Pacific is the fastest growing economy in 2018. The compressed air treatment equipment market in the Asia Pacific is likely to increase significantly in the future years as industrial facilities and infrastructure investment in India, China, and Japan expands. Furthermore, the increasing use of modern automation technology in various production units is likely to boost product sales.

The regional food and beverage industry has been heavily impacted by compressed air treatment equipment due to the availability of leading manufacturers. The rapidly expanding industrial, pharmaceutical, and other end-use sectors are likely to drive significant growth in the compressed air treatment equipment market in Europe over the forecast period. Compressed air treatment equipment improves the efficiency of hospital equipment and decreases rust and corrosion of surgical instruments caused by polluted air. The expanding pharmaceutical and healthcare sectors are likely to drive the market demand for compressed air treatment equipment throughout the forecast period.

The expansion of a number of food processing industries in Central and South America, coupled with increasing automation in the food and beverage sector, is likely to drive demand for compressed air treatment equipment in these industries. Furthermore, the increasing demand for packaged food and snacks throughout the world, along with an increased reliance on clean & food-grade compressed air for activities such as cleaning bottles, spray painting, and others is expected to drive market expansion in this region.

Key Companies & Market Share Insights

The global market is highly competitive. Some of the key companies in the industry are Ingersoll-Rand PLC; Parker Hannifin Corp.; and Gardner Denver, Inc. These companies focus on R&D and integrate several advanced technologies to sustain in highly competitive environment.

A few companies undertake vertical integration at the design and production levels to a large degree, although most manufacturers focus on only one aspect of the value chain. Furthermore, they focus on gaining a competitive advantage by expanding their local as well as international reach.

Compressed Air Treatment Equipment Market Report Scope

Global Compressed Air Treatment Equipment Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global compressed air treatment equipment market report on the basis of product, end use, and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Filters

    • Particulate Filters/Pre-filters

    • Coalescing Filter/Oil Removal

    • Adsorber Filter/Oil Vapor Removal

    • Filtered Centrifugal Separator

    • High Temperature After-filters

    • Moisture Separators

  • Dryers

    • Refrigerated

    • Desiccant

    • Membrane

    • Deliquescent

  • Aftercoolers

  • Others

• End Use Outlook (Revenue, USD Million, 2014 - 2025)

  • Chemical

  • Paper

  • Food & Beverage

  • Pharmaceuticals

  • Healthcare

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

    • Benelux

    • Eastern Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • South East Asia

  • South America

    • Brazil

  • Middle East & Africa

    • GCC

    • South Africa